Insurance Blog

Is Insurance Cheaper if You Own the Car?

It’s the day you’ve been waiting for. You paid off your car. Congratulations!

Now what?

As you enjoy the extra cash in your bank account, it may be a good time to take a look at another expense that impacts your budget: your auto insurance.

Now that you own your car, it’s reasonable to ask:

Which coverages are optional when you own your car?
Which coverages do you need to keep?
Are there any adjustments you could make to save you money in the long run?

Once your car is paid off, you do have the option to remove some optional coverages – and that could lower your premium. However, it might still be good idea to keep them for financial protection after an accident. Remember, if you don’t have insurance, you can be stuck paying repair costs out of pocket.

Good news: When you’re with ERIE, you don’t have to go it alone. Your car insurance policy comes with your very own local insurance agent who can answer your questions, run the numbers and help you decide what’s best for your unique financial situation.

Here’s a guide to reassessing your coverage once you pay off your car.

How much car insurance is required in your state?

Before you start cutting any type of coverage from your policy, find out about your state’s requirements for auto insurance. Your local ERIE agent can explain how things work where you live.

While you might be legally required to have coverages like personal injury protection or uninsured or underinsured motorist coverage in some states, they could be optional in others.

For a state-by-state list, check out this guide to state insurance requirements from the Insurance Information Institute.

Do you need collision coverage when you pay off your car?

Collision coverage helps you cover the costs of repairing or replacing your vehicle ‒ minus the deductible ‒ after it is damaged in an auto accident. It’s often required by lenders, but once you own the vehicle, it may be optional.

But the question about whether or not to drop collision coverage isn’t always an easy one to answer. Because even though your vehicle is paid off, it really comes down to your car and your circumstances. Here are a few questions you should ask yourself.

How much money do you have on hand? If you had an accident tomorrow, could you come up with the funds to repair or replace your car? Consider this: More than 6% of people who have collision coverage file a claim, and the average claim amounts to $3,435, according to a study by the National Association of Insurance Commissioners. Can you afford to pay nearly $3,500 out of pocket?
How much is your car worth? Some will tell you to rely on the age of the car. But it wasn’t that long ago when most people thought about replacing cars when they reached the 10-year mark and racked up more than 100,000 miles. These days, many makes and models can outlast those old benchmarks. That means your 10-year-old car may have retained significant residual value.
How much does full coverage cost? Take the cost of your annual premium and weigh that against your deductible and your car’s value. At a certain point, you and your agent may find there’s not much financial benefit to paying the additional costs, and then, it may be time to consider removing collision coverage from your policy.

When you’re with ERIE, your local agent can help you talk through these questions and determine if dropping collision coverage makes sense for you.

Do you need comprehensive coverage when you pay off your car?

Another coverage that’s optional after you pay off your vehicle loan is comprehensive coverage.

It helps you pay for vehicle damage that’s not caused by an auto accident. This includes things like:

Fire and explosions
Vandalism, including when someone keys or tags your car
Theft-related damage, such as damage caused by someone breaking into your vehicle
Storms, such as wind, hail, tornadoes, floods, earthquakes and hurricanes
Falling objects like a tree limb falling on your parked car, or if someone’s hauling materials and something falls and lands on your car
Windshield cracks and chips
Animal-related damage, such as damage caused by hitting a deer that jumps out in front of you on the highway

As your car gets older, the overall replacement cost can be a factor in whether you want to continue with comprehensive coverage.

Quick tip: Here’s one measure offered by the Insurance Information Institute: Multiply your premium for comprehensive insurance by 10. If the value of the car is worth less than that total, it could be time to drop comprehensive coverage. Your local agent can help you run the numbers and make a judgement call.

Say ‘Goodbye’ To Gap Insurance

When you’re paying on a car loan or a lease, your car may be valued for less than what you owe. So, if your car is totaled in an accident, gap insurance helps you pay off your loan or lease, minus the deductible.

Now that your vehicle is paid off, this coverage isn’t necessary anymore.

Let your insurance agent know you paid off your car

With your vehicle paid off in full, it’s time for your insurance agent to remove your auto lender’s name from your insurance policy. This is an important step to take, especially if you’re ever in an accident.

When it comes time for your insurance company to pay a claim, they’re obligated to issue a check to the name listed on the policy. When the information isn’t correct and your auto lender’s name is still on the policy, there’s typically a delay because they’ll need to stop the check or get it back before issuing another one.

So make that phone call today to avoid any hiccups down the road.

Find The Right Balance

At ERIE, we know that life is all about balance. It’s finding that sweet spot between your budget and getting the protection you need.

When it comes to the type of auto insurance you should have, rest easy that you don’t have to figure it out on your own. Contact your local ERIE agent today. They can help you run the numbers and determine what’s best for your unique financial situation.

Posted on 18 May 2022 | 9:00 pm

6 Things You Didn’t Know Your ERIE Auto Policy Could Cover

The next time you look over your ERIE auto insurance policy, look for the “Xs” throughout the margins. These are all the “Xtra Protection Features” that are automatically included with your ERIE auto policy.

6 ERIE Auto Policy “Xtras” You Might Not Know You Have

Here are just a few of the things you’re covered for (and always have been):

Road Trip: Whether you’re headed across the state with the family or on a vacation across the country, ERIE has your back if something happens to your car and you find yourself stranded after a covered loss. If you have purchased comprehensive or collision coverage applicable to your loss, ERIE offers a reimbursement of up to $75 per passenger in the vehicle for travel expenses if you don’t reach your destination and aren’t close to home. This reimbursement limit will be increased to $150 if you add the ERIE Auto Plus endorsement to your policy.
Paw Protection: ERIE cares about you—and your dogs and cats. If your pet is hurt in a covered accident while riding in your car, we’ll help cover the vet treatment costs by reimbursing you up to $500 per pet (up to two pets) for a maximum reimbursement limit of $1,000). That’s great news for Fido and Fluffy. Learn more about how to keep your furry loved ones safe in cars.
Locked Out: Darn it! We all know the feeling you get the minute you see your car keys on the front seat and the car is locked. If you find yourself in this situation and purchased comprehensive coverage, ERIE will reimburse you up to $75 for the cost of locksmith services on your insured car. If you add the ERIE Auto Plus® endorsement to your policy, the reimbursement limit increases to $125.
That New Car Smell: If you’re enjoying your new ride so much that you accidentally forgot to let your agent know about it, we get it. If you don't have comprehensive or collision coverage, just make sure to let us know within seven days of the purchase so that you have the proper coverage. (Learn more about how coverage works when buying a new car.)
Someone Crashes Your Shopping Spree: Imagine you’ve just purchased a TV or finished a round of golf and then… BAM! Someone rear-ends your car, smashing everything in the trunk. Don’t worry. If you purchased collision coverage on your vehicle, ERIE gives you up to $350 toward your personal items not covered by other insurance. (And if you add the ERIE Auto Plus endorsement to your policy, you can increase this limit to $500.)¹
Glass Repair: A single pebble flying through the air can cause more harm than you’d expect. From chips, nicks and cracks, it can be dangerous to drive around with a damaged windshield. If you’ve purchased comprehensive coverage, ERIE will waive the deductible for windshield repairs. (Add Full Window Glass to your coverage and ERIE will waive the deductible for both windshield repairs and replacements*.) Learn more about how to handle a windshield repair.

Get Advice from a Professional You Trust

There’s just so much to know about insurance, but fortunately, you don’t have to know it all. That’s why you have your very own local ERIE agent who can walk you through the complicated stuff.

Has it been a while since you checked in? To find your agent’s information, check your auto insurance ID card or log into your ERIE online account. New to ERIE? Find a local agent near you.

¹ With the ERIE Auto Plus endorsement, the limit increases to $500. In New York, the collision deductible cannot be reduced below $100 and the comprehensive deductible cannot be reduced below $50.Your ERIE agent can offer you practical guidance and answer questions you may have before you buy.

*In Kentucky, glass is considered safety equipment; under comprehensive coverage, no deductible applies for repair or replacement if only safety equipment is damaged (even if the loss is caused by collision). Full Window Glass is not available in North Carolina.

Posted on 15 May 2022 | 9:00 pm

What To Know Before You Finish Your Basement

In most cities across the United States, today’s hot real estate market is showing no signs of cooling down. Home prices continue to climb, driven by a shortage of inventory and low mortgage rates. And this hot market is driving many homeowners to invest in upgrading their current home instead of buying a new one.

For those looking to add more usable indoor space, finishing a basement is often at the top of the project list. When done right, a finished basement can help you reclaim wasted space in your home, allowing you to add extra living areas, bedrooms and even bathrooms while also increasing your home’s overall value.

But if the job isn’t done right… your newly finished basement could turn into a damp, musty waste of time and money.

To help you avoid the pitfalls of a poorly finished basement, here are nine things you should consider before starting your basement renovation.

How to Finish Your Basement the Right Way

1. Protect against moisture.

This is at the top of the list for a reason. According to The American Society of Home Inspectors, about 60 percent of U.S. homes have wet basements. And if left unaddressed, moisture or standing water in your basement could lead to a number of negative outcomes including mold, mildew and musty odors, as well as ruined flooring, drywall and framing materials.

Before you start planning your finished basement, check for any signs of moisture such as:

Condensation on pipes
Damp walls
Wet spots on your floor

If you find any evidence of water, address the issues before starting your renovation.

Fixing your water issues could be as simple as cleaning your gutters and patching wall cracks with waterproof caulk. Or it could require a whole basement waterproofing solution, such as adding French drains and a sump pump. For those bigger waterproofing jobs, you’ll want to call in a professional to help.

2. Choose the right materials.

After any moisture issues have been addressed, you’ll want to add insulation around the exterior walls of your basement to help regulate the temperature. There are many types of insulation that can be suitable for a basement.

Popular types of insulation for a finished basement include:

Sprayed foam
Bubble foil
Foam board
Fiberglass

Whatever type of insulation you choose, make sure it has a vapor barrier to protect the insulation from moisture in the walls, or apply a separate vapor barrier to the walls before adding insulation.

When it comes to walls and flooring, also choose building materials that won’t be destroyed by water. For walls, that means using moisture-resistant drywall or Sheetrock (sometimes called “greenboard”). Luxury vinyl planks and tiles are popular flooring options for basements these days because of their water resistance. If you opt for carpet or laminate flooring, be sure to install a vapor barrier, such as dimpled polyethylene, to help prevent water damage.

3. Plan for access to essential systems.

If your house has a basement, chances are it’s home to all sorts of critical infrastructure. That list can include:

Furnace
Water heater
Electric panel and wiring
Water pipes and sewer lines

When finishing your basement, make sure all of these systems remain accessible. If you don’t, you may find yourself cutting through drywall when a repair is needed. Here are some tips to provide access:

Install a drop ceiling for easy access to overhead pipes and wires.
Add access doors or panels for hard-to-reach areas.
Leave plenty of unfinished space around appliances like your HVAC system and water heater.

While we’re on the topic: Do you know if your homeowners policy includes coverage for breakdowns for major appliances and home systems? If not, learn how to add equipment breakdown coverage to your homeowners insurance.

4. Consider the ceiling height.

Depending on the age of your home, the ceiling height may be a concern. While local codes may vary, the International Residential Code (IRC) says a basement living space should have a clear floor-to-ceiling height of at least 7 feet (or 6 feet for bathrooms). If you’re cutting it close, take full advantage of recessed lighting fixtures to save headroom. And if adding a drop ceiling will take away too much height, try painting instead for a more finished look.

5. Add baseboard heating.

Basements can get cold in the winter months. To avoid heating your refinished basement with space heaters, consider installing electric baseboard heating. Since hot air rises, baseboard heat can help warm your space more efficiently than tapping into overhead furnace ducts.

Related: How to Safely Heat Your Home

6. Don’t forget about lighting.

Because they’re located underground, most basements don’t let in a lot of natural light. Before you start your project, consider whether it’s possible to add windows that can let in more light. If not, be sure to add plenty of light fixtures. A dark basement isn’t the most inviting space to entertain friends and family, even if it is newly finished.

7. Add essential safety features.

If your basement wasn’t originally designed as an extra living space, it may be missing key safety items you’d typically find throughout the rest of your home. For safety, consider these tips:

Make sure to add a handrail along your basement stairs.
Install smoke and carbon monoxide detectors.
Have your home tested for radon, and mitigate it if the radon levels are too high. (Learn more about how to test for radon.)

Finally: If you're adding another bedroom to your finished basement, you should also install an emergency exit (called an “egress window”). This will allow someone to safely escape from your home in the event of a fire. It’s also required by code, unless you have a walk-out basement.

8. Know the code.

Speaking of codes, it’s important to ask your local building department about requirements before you begin work on your basement. This will help ensure your plans fall within the legal guidelines. You should also understand any permits and inspections you’ll need to obtain, both before and after your renovation. If you hire an independent contractor, perform your own due diligence to ensure they’re doing everything by the book.

9. Talk to your insurance agent.

When your basement renovation is complete, you can expect to add about 70 percent of that investment to your home’s value, as reported by Remodeling magazine. That’s great news if you ever decide to sell your home. But in the meantime, be sure to let your insurance agent know about any improvements so they can update your homeowners insurance policy. As a rule of thumb, any project that would change how much it would cost to rebuild your home by $5,000 or more should be reported to your agent.

Notifying your agent will help ensure your home is covered for the amount it would take to rebuild it in the event of a total loss. Also, some homeowners insurance policies include provisions that allow the insurance company to deny or limit coverage for improvements that the insurance company was not made aware of. So it’s always best to be proactive and let your agent know if anything big has changed.

If you’re an Erie Insurance customer, ask your agent about our Guaranteed Replacement Cost¹ coverage. With Guaranteed Replacement Cost, ERIE will pay for the full cost of rebuilding your house back to its previous size and specifications at today’s costs—not all homeowners policies do that.

Protect Your Home With ERIE

Home is not just a place; it’s a feeling, too. We get how important “home” is, and we’re here to help you protect it. With the help of an ERIE agent, you can be confident in your coverage. Talk to an ERIE agent in your neighborhood to get a no-obligation homeowners insurance quote today.

¹Guaranteed Replacement Cost applies to the dwelling and requires home improvements over $5,000 to be reported within 90 days. Not available with all policies and in all states. Coverage of costs to comply with laws or ordinances is subject to limits. Depreciation will be deducted until the repair or replacement is made. Talk to an ERIE agent for more information.

Posted on 11 May 2022 | 9:00 pm

13 Bad Habits That Aren’t Good for Your Car

Bad habits. We all have them. And sometimes, they can be hard to shake. This is especially true when it comes to driving. Depending on how many years you’ve spent behind the wheel, certain habits may be deeply ingrained by now. And many of them can be bad for your car.

Wondering if there are any bad driving behaviors you’ve picked up over the years? Check out our list of 13 habits that aren’t good for your car.

Driving on empty

Whether you’re running late and forget to fill up, or you’re just not paying attention to your fuel gauge, finding yourself low on gas can happen from time to time. But running out of gas is more than just inconvenient; it can also be hard on your car.

Why? Because critical components, like your vehicle’s fuel pump, aren’t designed to operate without gas. The fuel pump is submerged in the gas tank, where it uses fuel to cool and lubricate the mechanisms in the pump. Most fuel pumps can last for the life of your vehicle.

But when you run your car on empty, the pump can overheat, which could lead to a costly failure. And because the gas tank typically needs to be drained and removed to replace the pump, this labor-intensive job could cost upward of $1,000 to repair.

Revving a cold engine

It’s no fun getting into a freezing cold car. But you should know there are no shortcuts to warming up a cold vehicle. So never rev up the engine in an effort to get the heat flowing faster. Doing this will only cause excess wear and tear on your engine because the cold engine oil isn’t at the right temperature to properly lubricate all its internal components.

Delaying maintenance

Every vehicle manufacturer recommends following a routine maintenance schedule to keep your car running in tip-top shape. In the short term, it may seem like there’s no harm in skipping an oil change, air filter replacement or tire rotation. But the truth is, taking care of these preventative maintenance tasks now can save you from needing major repairs later.

Ignoring warning lights

Modern cars feature a host of warning lights, and each is there to notify you of a particular problem with your vehicle. Ignoring these warning lights could leave you with a major repair down the road. Depending on the problem, it could even jeopardize the safety of you and your passengers.

So don’t make a habit of ignoring your vehicle’s warning lights. The next time that “check engine” light starts flashing, consult your car’s manual and if need be, take your car to a qualified mechanic to get it checked out.

Driving through deep water

If you approach any kind of flooding, including large puddles of groundwater, you may be tempted to drive right through. But your best—and safest—course of action is always to turn around and find another route. What may not seem like a lot of water can in fact be quite dangerous when you’re behind the wheel.

For starters, it can be hard to gauge how deep the water is, and you can’t see what debris or other hazards may be below the water.

On top of that, driving through deep water can damage or destroy your vehicle’s engine, transmission and other critical components. It can also cause irreversible damage to your car’s complex electrical system. Because of this long-lasting damage, a flooded vehicle is often considered a total loss by insurance providers.

Not checking your tire pressure

One of the easiest car maintenance tasks to ignore is checking your tire pressure. After all, if your tire isn’t flat, what’s the big deal? But not running your tires at the manufacturer’s recommended air pressure can cause a host of problems ranging from premature or uneven tire wear to bad handling and poor fuel economy.

For that reason, experts recommend that you make a habit of checking your tire pressure once a month. And remember that when it’s cold, your tire pressure will drop between one and two pounds per square inch (PSI) for every ten-degree decrease in temperature. So pay extra attention to your tires as the seasons change.

Riding the brakes

Your car’s brakes represent one of its most important safety systems. But hitting the brake pedal too hard, or using the brakes too often, can leave this system severely compromised.

For example, applying the brakes for a prolonged period of time (like when slowing your car down a long hill) can cause them to overheat. And when your brakes get too hot, their stopping power is greatly reduced.

Overuse of your brakes can have long-term consequences, too. More braking means you’ll wear through pads and rotors faster, which translates to more frequent service intervals. You can also expect to pay more at the pump, thanks to lower fuel economy caused by frequent braking.

To “break” this bad habit, try to leave some extra space between you and other cars on the roadway. And if you’re descending a long hill, try shifting your car out of overdrive and into a lower gear; this will allow the engine to do some of the braking for you.

Ignoring a windshield chip

You’re driving along when suddenly you hear a loud noise. Whack! A rock hits your windshield.

You scan your windshield for signs of damage and discover the impact only left a small chip. It’s barely noticeable, so there’s no point in getting it repaired, right? Wrong.

The truth is, leaving a windshield chip will increase the likelihood that the damage will get worse. Weather changes or simply driving over a pothole, speed bump or uneven terrain puts additional pressure on the edges of a chip, which can quickly turn into a crack.

Repairing a chip is always less expensive than doing a full windshield replacement. It typically takes less than 30 minutes. And in most states where Erie Insurance does business¹, comprehensive coverage from ERIE will cover the cost to repair a cracked or chipped windshield without charging you the deductible.

Learn more about what to expect when filing a glass claim.

Not regularly washing your car

Everybody can appreciate how good a freshly washed car looks. But the benefits of a clean vehicle extend far beyond the visual appeal. If you go long periods of time without washing your car, all that dirt and grime will embed itself in the painted surfaces and will eventually eat away at the clear coat, causing permanent damage.

The consequences are even greater if you live in an area that uses road salt to melt the ice and snow. That’s because salt creates chemical reactions that can corrode the components on your car. This is especially true for any exposed metal, like brake lines and fuel lines.

Shifting without coming to a complete stop

If you drive a car with an automatic transmission, you may have fallen into the bad habit of shifting from “reverse” to “drive” while the car is still moving.

Even if you’re moving backward at a slow speed, switching gears without coming to a complete stop puts extra stress on your car’s drivetrain—particularly the transmission. And chances are, the few seconds you save in the process aren’t worth the cost of a premature transmission service, which can cost $2,000 or more.

Driving too fast over speed bumps

Speed bumps are installed to help slow down traffic, making areas safer for pedestrians. If you drive over a speed bump at a slow speed, your car will be unharmed. But hit a speed bump faster than about 10 miles per hour, and you can do serious damage to your car.

The sudden impact of a speed bump could cause your suspension to bottom out, damaging your shocks and struts. It could also bend other important suspension components or knock your car out of alignment. So take it slow!

Hitting potholes

If you live in an area that sees cold winters, the constant freeze-thaw cycles can make potholes a common sight on the roadways. When driving, you should do your best to avoid hitting them at all costs.

Potholes can cause damage to your vehicle ranging from flat tires or bent wheels to much pricier damage to your suspension, steering system or exhaust system. Next time you encounter a pothole, try to swerve around it. If swerving isn’t possible, reduce your speed to lessen the impact—and any potential damage.

Letting your car sit for long periods

Parking your car for extended periods of time can take its toll on your vehicle. The time it takes for your vehicle to be damaged by long-term storage will vary based on several factors, including the location of your parked car and how well you’ve prepared it.

However, the negative effects of time on an undriven vehicle can be observed sooner than you may think. (Learn how long your car can sit without driving it.)

When your car is left undriven, the fuel and battery can go bad. Tires and rubber belts can crack. Rust can begin to form. And rodents could even make your car their new home.

If you have a college student away, for example, consider using a battery maintainer while the car sits. Since maintainers are used for maintenance during periods when cars aren't going to be used, time isn't of the essence when charging. This means that a maintainer can give a battery a "low and slow" charge, which is better for its health than a faster charge or a jump.

Auto Insurance You Can Trust

At ERIE, we believe reliability isn’t just important for cars. You should be able to count on your insurance company, too. When you purchase auto insurance from ERIE, we commit to being there when you need us—and we’ll get you back on your way, right away. To learn more, talk to a local ERIE agent in your neighborhood.

¹ In New York, you must purchase Full Window Glass Coverage in order to have the repair feature without a deductible. Full Window Glass Coverage is not available in North Carolina. In Kentucky, glass is considered safety equipment; under comprehensive coverage, no deductible applies for a repair or replacement if only safety equipment is damaged (even if the loss is caused by a collision).

Posted on 5 May 2022 | 9:00 pm

What’s That Weird Sound That Happens When I Open My Car Window?

You’re driving down the highway and decide to let in a bit of fresh air. You roll down one of your windows, and suddenly it’s like a freight train is running right next to your car. The overwhelming, rhythmic “thumping” sound feels like it’s about to blow out your eardrums.

We’ve all experienced it. But what is it?

That’s wind buffeting ‒ a loud and annoying phenomenon that happens when you roll down a lone window in your vehicle. But why does that happen, and what can you do to stop it?

Let’s find out.

3 Facts About Wind Buffeting

1. It’s Caused When Two Pockets of Air Crash Together

Get ready for some science. Wind buffeting is caused by an occurrence known as Helmholtz Resonance. In a nutshell, when you open just one window in your vehicle ‒ or the sunroof or moonroof ‒ the air inside your car thumps up against the faster-moving air outside the window.

When they clash, these two bodies of air compress and decompress over and over again. The result? Small wind vortexes that create that loud thumping sound.

These factors can affect wind buffeting:

The size and shape of your vehicle: You’ll hear louder thumping from newer, aerodynamic cars compared to older, boxy models. (More on that below.)
Your driving speed: The faster you drive, the more noticeable and extreme the noise.
Back vs. front windows: Wind buffeting is worse in back windows, since your front windows have side mirrors to help redirect the airflow.

2. It’s More Common in Newer Vehicles

New cars are more aerodynamic than their older cars. That means their shape and design help them move through the air more easily, reducing overall drag.

Unlike older vehicles, they’re also constructed to keep air sealed inside the vehicle rather than letting it escape ‒ or enter. It’s great for fuel economy, among other things.

But with all that air closely hugging the exterior of newer vehicles, any kind of opening – like your backseat window – will interrupt that smoother airflow and cause that thumping sound.

3. It’s Pretty Easy to Fix

Want the thumping to go away? Just open another window to help stabilize the air pressure. Voilà!

If only all other car annoyances were so easy to solve (we’re looking at you, flat tires).

Feel Right at Home

From the position of the steering wheel to your favorite station on the radio, your car is your safe haven on the road ‒ even with a little wind buffeting along the way. We want you to feel just as comfortable with your auto insurance coverage.

Get a no-obligation quote from a local car insurance agent near you today.

Posted on 3 May 2022 | 9:00 pm